Tariff evasion effects in quantitative general equilibrium

Peter Egger and Mario Larch

Economics Letters, 2012, vol. 116, issue 2, 262-264

Abstract: One consequence of tariff evasion is that a country’s average statutory import tariff rate deviates from the average applied tariff rate. We deliver an approach to estimate the average evasion rate in multi-country general equilibrium. We find evidence of significant average tariff evasion which leads to downward-biased estimates of the elasticity-of-substitution parameter in new trade theory models and associated upward-biased comparative static welfare effects of trade liberalization.

Keywords: Tariff evasion; Gravity model; International trade (search for similar items in EconPapers)
JEL-codes: F14 F15 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176512000924
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:116:y:2012:i:2:p:262-264

DOI: 10.1016/j.econlet.2012.03.005

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().